Australians committed $9.7 billion to personal fixed-term loans last quarter

Australians made $9.7 billion in new personal fixed-term loan commitments in the June quarter of 2026, according to the Australian Bureau of Statistics. The seasonally adjusted total was 0.9% lower than the March quarter and 7.1% higher than a year earlier.

Road vehicles accounted for $4.7 billion. The remaining $5.0 billion sat in the ABS “Other” category, which combines personal investment, travel and holidays, other vehicles and household goods.

These figures record borrower-accepted loan commitments. They do not show the size of an average loan, how many people borrowed for each purpose or whether debt consolidation was involved. The ABS series also excludes refinancing.

What does the total tell us?

The data shows that Australians continue to make substantial new personal borrowing commitments. It does not tell someone whether a particular loan is affordable or appropriate for their circumstances.

A personal loan can be used for a planned purchase, an unexpected bill or to reorganise existing debts. The purpose matters because the alternatives can differ. A service provider may offer a payment plan for an urgent expense. Someone considering consolidation may need to compare the new loan against every existing balance, rate, repayment and fee.

Start with the total cost, not only the repayment

A longer loan term can lower each regular repayment while increasing the total interest paid. A lower advertised rate can also be offset by establishment, monthly or early-exit fees.

MoneySmart recommends comparing the interest rate, comparison rate, fees, loan term, repayment amount and total cost. The comparison rate helps show the effect of interest and most fees, but it may not include every cost.

Ask a lender for the total amount repayable over the full term. If comparing two options, use the same loan amount and term so the result is meaningful.

For debt consolidation, compare both sides

Combining several debts into one loan may make repayments easier to manage, but it does not automatically reduce the amount paid. MoneySmart warns that a longer term, extra fees or a higher rate can leave someone paying more overall.

List each current debt before comparing an offer:

• the balance owing
• the interest rate and fees
• the minimum and actual repayment
• the remaining term
• any payout or closure cost

Then compare the combined current cost with the proposed loan’s rate, fees, repayment, term and total amount repayable. If repayments are already difficult, the National Debt Helpline offers free and confidential financial counselling.

What should someone check before applying?

Work out whether the repayment still fits after essential bills and a reasonable buffer. Check what happens if income falls or an unexpected expense arrives. Avoid using the maximum amount offered as the borrowing target without first calculating what is actually needed.

An application is not an approval. A lender’s decision, rate and loan amount can differ from the amount requested. No saving or credit outcome is guaranteed.

About the data and guidance

The lending figures come from the ABS Lending Indicators, June quarter 2026, released on 14 August 2026. The series covers new borrower-accepted personal fixed-term loan commitments, is seasonally adjusted and excludes refinancing.

General borrowing guidance comes from MoneySmart’s personal loans and debt consolidation and refinancing guidance. Free financial counselling is available through the National Debt Helpline.

This article uses official public statistics and general guidance. It does not use WeMoney member applications, connected-account data, transaction data, credit-file information or individual outcomes.

This article provides general information only. It is not financial or credit advice and does not take your circumstances into account.